Tax & Brokers

[Oscar Reed]

Anyone heard of a broker holding tax for the government.


For the purposes of withholding tax obligations, please assist Saxo Capital Markets (Australia) Pty Ltd (Saxo) to verify your ABN # - for Entity (Company/Trust/SMSF accounts or TFN # - for Individual/Joint accounts as per your trading account with Saxo.

To update your details, please click on the following link to submit your ABN or TFN number by 15th December 2016.

http://au.saxomarkets.com/tfn

Withholding Tax
A reminder that if an ABN or TFN number is not provided, Saxo is then required to deduct tax at the top marginal rate plus Medicare levy on any income earned from investments in underlying shares (interest and dividends).

Kind regards,
Saxo Capital Markets

 

[swissy]

Anyone heard of a broker holding tax for the government.


For the purposes of withholding tax obligations, please assist Saxo Capital Markets (Australia) Pty Ltd (Saxo) to verify your ABN # - for Entity (Company/Trust/SMSF accounts or TFN # - for Individual/Joint accounts as per your trading account with Saxo.

To update your details, please click on the following link to submit your ABN or TFN number by 15th December 2016.

http://au.saxomarkets.com/tfn

Withholding Tax
A reminder that if an ABN or TFN number is not provided, Saxo is then required to deduct tax at the top marginal rate plus Medicare levy on any income earned from investments in underlying shares (interest and dividends).

Kind regards,
Saxo Capital Markets

Hi Oscar,
Not a tax expert but as you know all net profits in AU are taxed. It would seem that the brokers are keeping on the right side of ATO by requesting TFN/ABN due to compliance issues.

 

[tar]

Anyone heard of a broker holding tax for the government.

Yes of course , US stocks and futures brokers will do so unless I fill the form w-8ben .

 

[Oscar Reed]

Hi Oscar,
Not a tax expert but as you know all net profits in AU are taxed. It would seem that the brokers are keeping on the right side of ATO by requesting TFN/ABN due to compliance issues.

Hi Swissy

Sounded like they were going to hold tax at the minimal rate even when you supply an ABN or TFN

At the moment profits or losses just sit there on the account.

And pay tax on 1/4 basis with ABN or every 12 months with TFN, both direct to the ATO

Wait see what happens, I can always vote with my feet if I don't like it.

Cheers
Oscar

 

[swissy]

Hi Swissy

Sounded like they were going to hold tax at the minimal rate even when you supply an ABN or TFN

At the moment profits or losses just sit there on the account.

And pay tax on 1/4 basis with ABN or every 12 months with TFN, both direct to the ATO

Wait see what happens, I can always vote with my feet if I don't like it.

Cheers
Oscar

Hi Oscar,

I think withholding tax can only be applied if you don't supply ABN/TFN.

As far as I am aware they can't withhold minimum, however they will send your data to ATO who will match it against your tax return

Cheers,

Swissy

 

[salitre6565]

Yes of course , US stocks and futures brokers will do so unless I fill the form w-8ben .

Can i ask you, If a US futures brokers don't make you fill the W-8ben, what does that
meant that they are going to hold the tax on the dividents and are going to pay them to the IRS?

Also what happen if the US broker make me fill the W-8ben? do i have to pay the
taxes by my self to the IRS?

I'm a non resident alienThx.

 

[new_trader]

Can i ask you, If a US futures brokers don't make you fill the W-8ben, what does that
meant that they are going to hold the tax on the dividents and are going to pay them to the IRS?

Also what happen if the US broker make me fill the W-8ben? do i have to pay the
taxes by my self to the IRS?

I'm a non resident alienThx.

What you need to know is here: http://www.irs.gov/pub/irs-pdf/iw8ben.pdf